New data from analytics firm TwentyEA has revealed that nearly one million property price reductions were recorded in 2024, marking the highest figure on record. These reductions reflect a challenging market for sellers but offer potential opportunities for landlords and investors looking to expand their portfolios.
Price reductions up across most of the UK
The number of price cuts in 2024 rose by 8.1% compared to 2023 and was 17.6% higher than pre-pandemic levels in 2019. Overall, 38% of concluded listings in 2024 involved at least one price reduction.
Regionally, the trend was widespread, with every part of the UK—except Northern Ireland—seeing an increase in reductions. Wales saw the largest growth, jumping from 36% in 2023 to 40% in 2024. Lower-priced properties, particularly those under £350,000, were the most affected, suggesting that affordability concerns are driving this trend.
Katy Billany, executive director of TwentyEA, explained the shift: “Price reductions are more prevalent within the lower price brackets, and there is an increase of price reductions concentrated within specific regions such as Wales. If agents were overvaluing, we would expect to see a more stark growth in price reductions across all price brackets and a more even spread across regions. That’s not the case.”
This indicates that sellers are entering the market with overly ambitious expectations, rather than agents overvaluing properties.
Opportunities for landlords in a cooling market
While the rise in price reductions may be disheartening for sellers, landlords and property investors can find silver linings. Price corrections in the market present opportunities to secure properties at more realistic valuations, particularly in regions with higher reduction rates.
Wales, for example, has become a focal point for price cuts, offering a potentially lucrative market for landlords looking to expand into more affordable areas. With a price reduction rate of 40%, the region could be ideal for investors targeting lower entry points.
Additionally, the prevalence of reductions in the sub-£350,000 price bracket makes it easier for landlords to identify properties with strong rental potential at discounted rates.
Billany added: “Given the prevalence of price reductions happening right now, we’re expecting to see this continue for the foreseeable future.”
A long-term outlook for investors
For landlords, understanding these trends is crucial for making informed decisions. While sellers may feel pressured to adjust their expectations, landlords can benefit from a stabilising market where property values align more closely with realistic demand.
As 2024 comes to a close, the property market reflects broader economic shifts. Rising interest rates, affordability challenges, and regional disparities have contributed to the high number of price reductions. However, for landlords willing to adapt, these conditions create a unique window of opportunity.
